Derivative (finance)

In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and often called the "underlying". Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation or getting access to otherwise hard-to-trade assets or markets.
Some of the more common derivatives include forwards, futures, options, swaps, and variations of these such as synthetic collateralized debt obligations and credit default swaps. Most derivatives are traded over-the-counter (off-exchange) or on an exchange such as the Bombay Stock Exchange, while most insurance contracts have developed into a separate industry. Derivatives are one of the three main categories of financial instruments, the other two being stocks (i.e., equities or shares) and debt (i.e., bonds and mortgages).

Derivative (finance)

In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and often called the "underlying". Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation or getting access to otherwise hard-to-trade assets or markets.
Some of the more common derivatives include forwards, futures, options, swaps, and variations of these such as synthetic collateralized debt obligations and credit default swaps. Most derivatives are traded over-the-counter (off-exchange) or on an exchange such as the Bombay Stock Exchange, while most insurance contracts have developed into a separate industry. Derivatives are one of the three main categories of financial instruments, the other two being stocks (i.e., equities or shares) and debt (i.e., bonds and mortgages).

In this article, I will take a look at how futures contracts could have been used to skew the markets and why contract delivery is such an important distinction for a futures contract... The counter-parties to the derivativecontract will enter a futures contract as it was intended ... So, when can we expect to see physically settled contracts?....

Leading stock exchange BSE said it has received Sebi's permission to increase trading hours by an hour in commodity derivatives segment ... The BSE marked its entry into the commodity derivatives segment with gold and silver contracts on October 1, 2018....

According to the fund's prospectus, the CYBETF tracks the value of the Chinese Yuan against the US Dollar, through derivatives, namely forwards contracts. The forwards contracts are rolled over quarterly ... As the holdings of the fund reveal, the fund's strategy makes heavy use of forwards contracts....

The strategy does not involve the use of derivatives but simply involves buying yen using US dollars... Hence, the fact that this ETF is not derivative-based makes it an even more attractive investment option due to the absence of losses being made through buying and selling volatile derivativecontracts....

SINGAPORE, Dec ... Among other topics, Walsh and Gao explored OTC versus exchange liquidity for top cryptocurrency pairs, liquidity imbalances in perp swaps, futures versus the spot market, the use of smart contracts in facilitating decentralized derivatives, and the need for institutional-grade derivatives to aid price discovery ... About Huobi.....

CHICAGO, Dec ... For additional information visit ... 2018 ... 2 Structured notes and structured annuities are financial instruments designed and created to afford investors exposure to an underlying asset through a derivativecontract ... The Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the FLEXOptionscontracts ... ....

Derivatives in financial markets typically refers to a forward, future, option or any other hybrid contract of pre-determined fixed duration, linked for the purpose of contract fulfilment to the value of a specified real or financial asset or to an index of securities. Broadly, there are two types of derivativecontracts -- futures and options....

OCC, the world’s largest equity derivatives clearing organization, today said its total cleared contract volume on behalf of the U.S ... OCC has cleared 5.01 billion total contracts and 4.91 billion options contracts year-to-date, surpassing the previous records of 4.60 billion total contracts and 4.56 billion options contracts set in 2011....

OCCSETSNEW RECORD WITH 5 BILLION CLEARED CONTRACTS TO DATE IN 2018. OCC, the world’s largest equity derivatives clearing organization, today said its total cleared contract volume on behalf of the U.S ... "The efficient clearance and settlement of more than five billion contracts is a remarkable achievement for the U.S....

The new Methanol fob Houston (Argus) futures contract will be financially settled to the Argus Methanol Daily assessment price. The Argus daily methanol assessment is the most-referenced price among US physical methanol contracts, making Argus the natural choice to deliver a price against which derivative markets can settle....

All four contract codes were traded in the derivatives market on the Hà NộiStock Exchange (HNX) in November, with total trading volume of 2.82 million contracts, up 10.6 per cent against the previous month ... ....